A follow up on this. Added City union bank and dlink yesterday. For city union bank i actually broke a couple FDs and added into it since im pretty much convinced i wont lose money here. Its a 5 year play for me. Expecting no/minimal book growth in the next year until the npa issues get sorted and for it to go back to its near constant and extraordinary 13 to 14 percent book growth rate of the last 10 years from from FY25. Over 5/6 years i can see a book value of 150 and a median P/B of 2.4 would see me get a 3x in 5 years instead of leaving cash stuck in fds even at admittedly high rates. There are a lot of risks here but after ugro and idfc im excited to take a new bank journey. I may scale my investment up even further over the next few quarters depending on how things look. Honestly, sometimes an opportunity looks so good that i cant stop thinking about it and i do all i can to invest in it … its happened 6 times over the past few years for me… ITC sub 200, Laurus in low 100s, (pre split) Ugro at 105, Deepak nitrite at under 500 and ingrevia at listing near 240, idfc in its 20s/30s. Thats what i feel with CUB right now considering its also an excellent company and not just any cheap bank… and im doing all i can to take part in this opportunity since these occassions dont pop up too often. Im hoping it stays in this range for a quarter or two so i can build it to 10 percent levels of my pf(currently around 4 percent)
Dlink i added more to my tracking position but wasnt that comfortable adding more than a percent of my PF. Ran up today and i may just leave that percent in and not scale it up since I honestly still dont know much of this space and it falls under the learning experience category
Rkec im buying cautiously and have barely dipped my toes in and the stake here isnt really relevant and more as a learning experience… even more so than dlink. Absolutely hate the construction space but it looks too cheap to ignore. Will scale it up over the next few quarters. That being said embassy office at current prices tempts me more as a real estate play… though based on its price action i foresee problems upcoming including a possible dpu cut which would explain the 52 week low. Very cautious with this after i burnt my fingers earlier.
Disc: Not a sebi advisor.
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